Tesla’s epic fall from grace is a masterclass in reputation implosion. Once ranked 8th in corporate reputation, the EV maker now sits at a dismal 95th place in the 2023 Axios Harris Poll. The company scored dead last in “Character” and nearly bottom-ranked in trust (98th) and ethics (98th). CEO Elon Musk’s controversial behavior, from political rants to alleged Nazi salutes, hasn’t helped. Even BP, with its oil spill baggage, ranks higher. The full story gets messier.
While Tesla once enjoyed an enviable reputation as an innovative electric vehicle pioneer, the company’s standing has taken a spectacular nosedive in recent years. According to the latest Axios Harris Poll, Tesla now languishes at a dismal 95th place out of 100 visible American companies – quite the tumble from its lofty 8th-place position in 2021.
The numbers are brutal. Tesla scored dead last in “Character,” a category where even companies with notorious environmental disasters managed to rank higher. BP, responsible for the Deepwater Horizon catastrophe, somehow looks better in the public eye. Let that sink in. Consumer sentiment shows increasing concern about corporate ethics and character.
The company’s descent into reputational purgatory appears closely tied to CEO Elon Musk‘s increasing political activism and controversial public statements. Tesla ranked near rock bottom in trust (98th), ethics (98th), and citizenship (99th). Even UnitedHealth Group, often criticized for putting profits before patient care, earned better marks. Shareholders previously supported Musk by voting to approve his $55 billion pay package.
Other automakers are leaving Tesla in the dust when it comes to public perception. Toyota sits pretty at 6th place overall, while Ford – the lowest-ranked traditional automaker – still towers above Tesla at 62nd place. The company’s only saving grace? Its “products and services” category scored slightly less terribly than the rest.
The timing of Tesla’s reputation crash coincides conspicuously with Musk’s $44 billion Twitter acquisition and subsequent controversial behavior. Recent incidents, including alleged Nazi salutes and statements characterized as white supremacist in nature, have reportedly embarrassed Tesla owners and alienated potential customers.
The poll reveals a stark political divide in Tesla’s perception, with Republicans viewing the company more favorably than Democrats. This polarization extends to Musk’s other ventures, like SpaceX, which shows a 28.7% gap between Republican and Democratic approval ratings.
For a company that once boasted an “excellent” reputation rating, Tesla’s current score of 61.3 places it firmly in “poor” territory. It’s a dramatic fall from grace for what was once considered the darling of the automotive industry.
